CH -1

INTRODUCTION

1

INTRODUCTION

What is LOGISTICS?

Logistics is about moving materials, information and funds from one

business to another or from a business to the consumer. It is a vital part of

the business economic system and is a major global economic activity. In

fact 10-15 per cent of product costs are logistics related. Worldwide,

logistics constitutes about $2 trillion a year. For any country, the logistics

cost is estimated between 9 and 20 per cent of its GDP.

Logistics is the management of the flow of goods, information and

other resources, including energy and people, between the point of origin

and the point of consumption in order to meet the requirements of

consumers (frequently, and originally). Logistics involve the integration of

information, transportation, inventory, warehousing, material-handling, and

packaging

Every company dreams of achieving the seven R's - delivering the

right product in the right quantity and the right condition, at the right place,

at the right time, for the right customer at the right cost. Effective logistics

management alone can make this possible.

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Logistics is one of the oldest and also the newest activities of business

management. It involves combining diverse functions and service providers

who may be culturally and objectively different.

In the past, quality of products and services was the key

differentiating factor for companies operating in the same market. In due

course, quality and low cost became the winning combination.

Today, responsiveness to the customers' needs is the determining

factor. An enterprise that caters instantly to the needs of the customer is the

winner. Integrated logistics can serve as a potent tool for success in today's

competitive business environment.

Logistics is an organized process of managing the flow of

merchandise from the source of supply - the vendor, wholesaler or

distributor - through internal processing functions like warehousing and

transportation, until the merchandise is sold and delivered to the end

customer.

Logistics management aims to reduce inventory-holding costs and

improve profits, while enhancing customer satisfaction.

Anything can be ordered online, but receiving a tangible product is

impossible. The difference between e-business success and failure lies in a

company's ability to manage the logistics.

A recent US study found that logistics costs account for almost 10% of

the gross domestic product. The process itself covers a diverse number of

functional areas. Involved in logistics are transportation and traffic, as well

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as shipping and receiving. It also covers storage and import/export

operations.

The concept of logistics can be applied to specific areas of business.

Acquisition logistics, for example, covers everything involved in acquiring

logistics support equipment and personnel for a new weapons system for the

military. This includes identifying, designing, defining, developing,

producing, delivering and installing the new weapons system.

Another area is Integrated Logistics Support (ILS). This is a

management function that provides funding, planning and controls to assure

that the system meets the expected requirements. ILS is also expected to

make sure the price of the goods is reasonable and the product is of the

required quality.

Many businesses that deal with supply of goods or services have their

own logistics department. For example, a company supplying photocopying

paper around the world will have a logistics team. The manager will oversee

or delegate to his staff the process from the point of origin. The team will

deal with the acquisition of paper from the paper supplier all the way to the

customer who requests the paper. The supplier and buyer may be located in

different countries.

It is the logistics team who must make sure that products can be obtained

at a reasonable price. They then have to make sure the product is shipped on

time and will arrive when expected. The logistics team also has to deal with

importing and exporting contracts, and possibly also with the customs

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department. The process at times can be a lengthy one, but once in place

should run smoothly.

History of Logistics

The Greeks defined logistics as "the science of correct reasoning by

means of mathematics". The first modern use of the term was in the military

to identify the process of planning and coordinating the movement of army

and weapon support systems. Good logistics brings out the ability to move

faster and accurately to the battlefront. “If one applies the same to the

business organisation, it is one's ability to reach the product to the consumer

at the right time, right place, right quantity and at the lowest cost.” On

similar lines, supply chain management will mean the network of

organisations involved in the process by which goods are moved from

producer to consumer and the counter flow of information, to manage the

supply chain as a single entity.

A prominent application of logistics was in World War II where

weapon movements were coordinated to ensure success. A recent instance of

massive logistics initiatives is in the Gulf war. With increasing competition

in the market place, managements started focusing on customer services in

the early 1950s in developed markets such as Europe and the U.S. In late

1960s some of the logistics concepts were tested. Following the oil crisis of

the 1970s and the concept of just in time in manufacturing customer-

servicing standards were given more importance and new integrated logistics

models and solutions were born. The emergence of organized distribution

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system by department stores and super fast courier service organisations

gave a boost to logistics concepts and strategies. Today all businesses are

looking for seamless transaction systems to co-ordinate their information

and material requirements along the value chain.

At the micro level any manufacturing and marketing company spends

5 - 35 per cent of sales on logistics. The major cost components are

transportation, warehousing and inventory carrying cost. Improvements in

logistics get reflected in a reduction in inventory levels, shorter delivery

schedules, and improved servicing standards with significant savings in total

costs.

Logistics Management

Logistics management is that part of the supply chain which plans,

implements and controls the efficient, effective forward and reverse flow

and storage of goods, services and related information between the point

of origin and the point of consumption in order to meet customers'

requirements. A professional working in the field of logistics

management is called a logistician.

Logistics Management Software

Software is used for logistics automation which helps the supply chain

industry in automating the work flow as well as management of the

system. There is very few generalized software available in the new

market in the said topology. This is because there is no rule to generalize

the system as well as work flow even though the practice is more or less

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the same. Most of the commercial companies do use one or the other

custom solution.

Business logistics

Logistics as a business concept evolved only in the 1950s. This was mainly

due to the increasing complexity of supplying one's business with materials

and shipping out products in an increasingly globalized supply chain, calling

for experts in the field who are called Supply Chain Logisticians. This can

be defined as having the right item in the right quantity at the right time at

the right place for the right price and is the science of process and

incorporates all industry sectors. The goal of logistics work is to manage the

fruition of project life cycles, supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or

external focus (outbound logistics) covering the flow and storage of

materials from point of origin to point of consumption . The main functions

of a qualified logistician include inventory management, purchasing,

transportation, warehousing, consultation and the organizing and planning of

these activities. Logisticians combine a professional knowledge of each of

these functions so that there is a coordination of resources in an

organization. There are two fundamentally different forms of logistics. One

optimizes a steady flow of material through a network of transport links and

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storage nodes. The other coordinates a sequence of resources to carry out

some project.

Production logistics

The term is used for describing logistic processes within an industry. The

purpose of production logistics is to ensure that each machine and

workstation is being fed with the right product in the right quantity and

quality at the right point in time.

The issue is not the transportation itself, but to streamline and control the

flow through the value adding processes and eliminates non-value adding

ones. Production logistics can be applied in existing as well as new plants.

Manufacturing in an existing plant is a constantly changing process.

Machines are exchanged and new ones added, which gives the opportunity

to improve the production logistics system accordingly. Production logistics

provides the means to achieve customer response and capital efficiency.

Production logistics is getting more and more important with the decreasing

batch sizes. In many industries (e.g. mobile phone) batch size one is the

short term aim. This way even a single customer demand can be fulfilled in

an efficient way. Track and tracing, which is an essential part of production

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logistics - due to product safety and product reliability issues - is also

gaining importance especially in the automotive and the medical industry.

Logistics Management Process

Michael Porter in his famous book "Competitive Advantage'' has

spoken of the value chain approach and emphasized logistics as one of the

most important tools for competitive advantage.

The various processes and elements that are part of logistics as a discipline

are:

Inbound logistics: Purchasing, Inbound transportation, Inventory

Management.

Manufacturing: Production planning systems, Machine scheduling

system.

Outbound logistics: Order booking process, Distribution management,

outbound transportation, and Warehouse management systems.

As customers started demanding improved servicing standards, fast cycle

time has become the key factor for business success, whether it is custom

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made tailoring service in Hong Kong or development of a new car in

Detroit.

Before delving deep into logistics, a look at the current business scene will

be great help.

Scenario of Logistics in India

At present, companies specialising in logistics operations in India use

traditional technologies and cater to stand alone services like transportation,

warehousing, clearing and forwarding. There is tremendous scope to

upgrade the technology, integrate the entire supply chain, improve

productivity levels and bring down operating costs. Any technology that can

improve productivity in transportation operations will be a great boom to the

economy both directly and indirectly with opportunities for 10-12 per cent

reduction in costs. Besides the savings on downstream users of transport will

be much higher and the cost multiplier effect on the economy will be

reduced to that extent.

Given the emerging business and technological trends there are

possibilities for adoption of innovative logistics solutions specifically

designed for India. In addition, there is a requirement for an integrated

strategy towards developing logistics and its related IT infrastructure and

also enhancing its industry base.

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In recognition of the growing need for technology-enabled solutions

in logistics in India and abroad, many companies such as eLogistics are

taking shape. In fact, there are a dozen multinational logistics companies

such as Exel, Bax Global and Menlo which have started operations in India

during the last few years.

Today logistics management in India has become complex with about

ten million related outlets to cater to the needs of 1000 million people.

The logistics market in India is estimated to be Rs. 260,000 crores and

constitutes 13 per cent of the GDP. It is much higher than for the U.S. but

lower when compared to countries like China and Korea.

A reduction in logistics costs by one percentage point will mean a

saving of $4.8 billion or Rs. 21,600 crores annually.

Besides significant benefits can be reaped through the multiplier

effect of better logistics on all economic sectors.

About Customer Service

According to LaLonde and Zinszer have researched various ways that

customer service can be viewed: 1) as an activity, 2) in terms of performance

levels, and 3) as a philosophy of management. Viewing customer service in

terms of performance levels has relevancy providing it can accurately

measured. The notion of customer service as a philosophy of management

exemplifies the importance of customer-focused marketing. All three

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dimensions are important to understand what is involved in successful

customer service.

A broad definition of customer service should embody elements from

all three perspectives. LaLonde and his associates offer the following

definition:

“Customer services are a process for providing significant value-

added benefits to the supply chain in cost-effective way.” This definition

illustrates the trend to think of customer service as a process-focused

orientation that includes supply chain management concepts.

It is clear that excellent customer service performance seems to add

value for all members of the supply chain. Thus, a customer service program

must identify and prioritize all activities important to accomplish operating

objectives. A customer service program also needs to incorporate measures

for evaluating performance. Performance needs to be measured in terms of

goal attainment and relevancy. The critical question in planning a customer

service strategy remains, does the cost associated with achieving the

specified service goals represent a sound investment and, if so, for what

customers? Finally, it is possible to offer key customers something more

than high-levels basic service. Extra service beyond the basics is typically

referred to as value- added. Value-added services, by definition, are unique

to specific customers and represent extensions over and above a firm’s basic

service program.

The three fundamental dimensions of customer service were: -

Availability.

Performance.

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Reliability.

About Logistics & Customer Service

Logistics contributes to an organization’s success by providing

customers with timely and accurate product delivery. The key question is

who is the customer? For logistics, the customer is any delivery destination.

Typical destination range from consumers’ homes to retail and wholesale

businesses to the receiving docks of a firm’s manufacturing plants and

warehouses. In some cases the customer is a different organization or

individual who is taking ownership of the product or service being delivered.

In many other situations the customer is different facility of the same firm or

a business partner at some other location in the supply chain. Regardless of

the motivation and delivery purpose, the customer being serviced is the focal

point and driving force in establishing logistical performance requirements.

It is important to fully understand customer service deliverables when

establishing logistical strategies.

Whereas logistics is not capability that contributes to overall success,

it is fundamental to servicing customers. In a typical marketing situation, the

desired customer service performance changes over time. To plan marketing

strategy in a dynamic will serve to illustrate how logistical customer service

requirement related to a specific product/segment situation will change over

time. The product life cycle structure offers a useful framework for viewing

the dynamics associated with customer service requirements planning.

In terms of overall logistical performance, the basic customer service

platform or program should be the level of support provided to all

customers.

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CH- 2

OBJECTIVES

OF

THE STUDIES

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OBJECTIVES

The objective was to have a complete knowledge the logistics of goods,

information and other resources, including energy and people. Alongside

this, the objective was to study the functioning of BLUE DART as an

example of typical logistics company.

The study was done primarily with the following objective in mind:-

The main objective of the study to learn about the logistics along with

the functioning of BLUE DART .

To know about the policies and procedure followed by the BLUE

DART while transporting the goods and services.

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To know about the need and importance of a logistics company in

today’s scenario.

CH- 3

ANALYTICAL

RESEARCH16

OF

BLUE DART

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Corporate Profile

About BLUE DART

BLUE DART is South Asia's leading integrated air express carrier

and premium logistics-services provider. It has the most extensive domestic

network covering over 13,880 locations, and service more than 220

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countries and territories worldwide through its Sales alliance with DHL, the

premier global brand name in express distribution services.

BLUEDART’S vision is to establish continuing excellence in delivery

capabilities focused on the individual customer. In pursuit of sustainable

leadership in quality services, they have evolved an infrastructure unique in

the country today.

State-of-the-art Technology, indigenously developed, for Track and

Trace, MIS, ERP, Customer Service, Space Control and Reservations.

Blue Dart Aviation, dedicated capacity to support their time-definite

morning deliveries through night freighter flight operations.

Warehouses at 14 locations across the country as well as bonded

warehouses at the 6 major metros of Bangalore, Chennai, Delhi, Mumbai,

Kolkata and Hyderabad.

ISO 9001 - 2000 countrywide certification by Lloyd's Register

Quality Assurance for their entire operations, products and services.

It’s Competitive Advantage lies in:

Blue dart’s vast and unparalleled Domestic Network

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Linked by some of the most advanced communications systems and

positioned to offer a consistent, premium, standardized quality of service.

A spectrum of services to provide customized solutions.

Blue dart is the only express carrier in the country today which offers

an entire range of services that extend from a document to a charter-load of

shipments. Its services are relentlessly monitored to deliver a net service

level of 99.96% (as on February, 2005).

It’s Customs and Regulatory expertise

Company had a dedicated team of specialists who provide the

expertise for customs as well as regulatory clearances at all States within the

country, to support seamless service to the customer.

It’s Technology

Designed to enhance the reliability of our operations and process

efficiency, and add value to the customer through time and cost savings.

It’s Air Network

The only one of its kind in the country today, that is focused on

carriage of packages as its prime business, rather than as a by-product of a

passenger airline. A dedicated aviation system to support Blue Dart's

services is self-sustaining, with its own bonded warehouses, ground

handling and maintenance capability.

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Its financial credibility

Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (Ind)"

[F one plus (Ind)] rating for their short term debt programme of Rs. 30

crores. Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced

A one plus) Rating for their Commercial Paper Programme of Rs. 25 crores.

Its People force

Committed, diverse and over 4,000 strong are company’s most valued

asset. All company’s achievements have been possible because they have a

team who believes in themselves and their company, a team with a winning

attitude. Blue dart is a learning organization, valuing self-development, and

most of company’s managers are homegrown.

MILESTONES

1983:

Khushroo Dubash, Clyde Cooper, and Tushar Jani establish Blue Dart

Courier Services with a capital base of Rs: 30,000. They forge ties with

Gelco Express International U.K., and introduce India's first international air

package express service.

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1984:

Blue Dart Courier Services becomes a Global Service Participant of FedEx

with the acquisition of Gelco Express International by FedEx. Blue Dart

Courier Services is the first carrier in India to provide domestic and

international on-board couriers, a hub-and-spoke system and a 10.30 a.m.

delivery service.

1988:

Blue Dart Courier Services establishes real-time, on-line tracking for all

international shipments through COSMOS, the FedEx track and trace

system.

1991:

Blue Dart Express is registered as a private limited company, and introduces

its economical logistics service option, Dart Surfaceline. It indigenously

develops its domestic tracking system, COSMAT-ITM.

1992:

Blue Dart Express Pvt. Ltd. connects its in-house domestic E-mail network,

and sets up its employee satisfaction programme - Survey Feedback Action

(SFA).

1994:

Blue Dart Express Ltd. goes public with an equity offer of 2.55 million

shares, at a premium of 14 times, worth Rs: 382.5 million. Blue Dart

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Express Ltd. launches Dart Apex (Domestic Air Package Express), a multi-

modal, premium package delivery service, and COSMAT-IITM, an advanced

system which includes track and trace. Blue Dart Aviation is registered as a

public limited company and becomes the first private company to receive

government permission for operation of cargo aircraft in India.

1995:

Blue Dart Aviation acquires 2 Boeing 737-200 freighters and receives ATO

permission. Blue Dart Express Ltd. develops its SMART (Space

Management Allocation Reservations and Tracking) system for its aircraft,

the first cargo management system in the country. Blue Dart Express Ltd. is

awarded the "Global Service Participant Sales Award" by FedEx for

outstanding sales performance.

Blue Dart, Calcutta is proud to have the office inaugurated by Mother

Theresa of the Missionaries of Charity, and Nobel Peace Prize Laureate.

1996:

Blue Dart Aviation launches India's first jet express airline. Blue Dart

Express Ltd's turnover crosses the Rs: 1 billion mark, as it expands its

domestic network by entering into strategic alliances in North, South and

West India. Blue Dart Express Ltd. is the first express company in India to

receive an ISO 9001 certification, and post its website on the internet. Blue

Dart Express Ltd., FedEx and the Heart-to-Heart Foundation, U.S.A., co-

operate in bringing the world's largest airlift of charity to Kolkata.

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1997:

Blue Dart Express Ltd. signs agreements with leading international airlines

for distribution of bonded cargo within its network. Blue Dart Aviation

launches its domestic charter operations.

1998:

Blue Dart Aviation develops India's first Load and Trim software for its

B737F flights. Blue Dart Express Ltd. launches SMARTBOX, its

economical, packaged door-to-door product, and extends its delivery to over

1000 locations.

1999:

Blue Dart Express Ltd. moves to its state-of-the-art Administrative,

Technology and Operations Super hub, the Blue Dart Centre, at Mumbai. At

close proximity to both the international and domestic airports, encircled by

four five-star hotels, and equipped with the latest technology, the Super hub

has improved efficiency and increased load-handling capacity multifold.

Blue Dart Express Ltd. Launches Power Dart 2000+, a software that

provides customers free connectivity to its database, enabling customers to

track and retrieve all information related to their shipments.

2000:

Blue Dart Aviation acquires its 3rd aircraft on lease. The aircraft is

scheduled for operations on the Bangalore-Delhi-Bangalore sector. Blue

Dart Express Ltd. also revamps its website replacing it with an interactive

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website to support e-trade and commerce and facilitate customer interface on

the net.

2001:

Blue Dart launches its 3rd aircraft operations on the Bangalore-Delhi-

Bangalore sector. The Civil Aviation Ministry requisitions Blue Dart

aircrafts for relief operations into earthquake-battered Bhuj in Gujarat.

Technology tools and customer software - MobileDart, On-Line Pick Up and

ShipDart - are developed in-house and launched. Blue Dart declares 1:1

bonus shares. Blue Dart, Kolkata moves into heritage building, Kanak, its

new premises inaugurated by Sr. Nirmala of the Missionaries of Charity.

2002:

Blue Dart is re-certified as one of a handful of Indian companies to the new

global ISO 9001 - 2000 standards for "Design, management and operations

of countrywide express transportation and distribution service within the

Indian Subcontinent and to international destinations serviced through

multinational express companies". Blue Dart ends its contract with Federal

Express and signs a path-breaking Sales Alliance with the World's No. 1

international air express company, DHL Worldwide Express. Blue Dart

crosses 100,000 shipments per day.

2003:

2003 - Blue Dart acquires its fourth Boeing 737 freighter. With a thrust on

strengthening infrastructure, Blue Dart establishes twelve of its own offices

in the South, delivering to an additional 198 locations, expands its hub at

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Bhiwandi and sets up a bonded warehouse in Mumbai. The company is

selected a Super brand from over 700 brands across 98 categories by a jury

of eminent marketing and advertising professionals. The company celebrates

its 20 years of service to the nation on 19th November 2003

2004:

Blue Dart inducts its 4th aircraft into operation on 17th May 2004,

connecting Hyderabad as its 6th Aviation Hub. Blue Dart also extends its

brand into Sri Lanka through a Regional Service Alliance with Foster

Agencies Pvt. Ltd., Member of the Hayleys Group, one of Sri Lanka's

largest diversified multinationals. The Alliance will enable customers to use

Blue Dart services between 400 locations in Sri Lanka and over 13,700

locations in India. Blue Dart acquires its fifth Boeing 737 freighter.

2005:

DHL Express (Singapore) Pvt. Ltd. completes the acquisition of 81.03% of

the equity capital of Blue Dart Express Limited. Blue Dart continues to

operate as an independent brand and provides a complete spectrum of

domestic and international express services through synergies with DHL.

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27

COMPANY’S VISION

&

FUTURE PLANS

Company’s Vision:

"To be the best and set the pace in the air express integrated transportation

and distribution industry, with a business and human conscience. We

commit to develop, reward and recognize our people who, through high

quality and professional service and use of sophisticated technology, will

meet and exceed customer and stakeholder expectations profitably."

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Company’s future plans:

Focus on our core domestic products to expand our market share and

consolidate our unique and premium position in the Indian market, and

expansion into the near Mid-East and Far East markets and the SAARC

(South Asian Association of Regional Co-operation) countries. Blue Dart

would also leverage its vast customer base for global distribution through its

alliance with DHL. We plan to leverage our established infrastructure to

continue adding value and customised solutions to the changing and

evolving demands of the customer. We would also provide global logistics

customers with access to our quality domestic and regional distribution. Our

domestic network will continue to differentiate itself in all areas of our core

competencies - supply chain management, logistics and Ecommerce.

Position ourselves as the preferred, seamless link to a country

projected to be an economic superpower of the 21st Century. Through our

technology development, premium services, quality network and strategic

alliances, we plan to carve for ourselves a leadership position in the industry

as India's and the region's link to the world.

Continue to deliver value to our stakeholders through our People

Philosophy and Corporate Governance based on distinctive Customer

Service, Business Ethics and Accountability, and Profitability.

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30

LOGISTICS

IN

BLUE DART

LOGISTICS IN BLUE DART

The Information Technology industry is, perhaps, typical of the

changing and escalating logistic demands of various industries today,

irrespective of their category as 'old' or 'new' economy. In the IT industry,

the difference between success and failure is closely linked to the

supply/value chain integration, of which there are two distinct processes:

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1. The delivery of goods to the customer in the most reliable transit period

(and preferably the shortest) possible. 'Reliable' alludes to a certain

guaranteed transit time for packages to reach customers or the response that

organisations need in the event of any exceptions.

2. The reverse flow of acknowledged signed delivery records without which,

in many cases, recovery of bills are virtually impossible. Especially so in the

case of companies placing multi-location orders that could cover hundreds

of cities. The task for the supplier is staggering - plan logistics for deliveries

to all these locations, and hope for 100% of the delivery records to be

returned before bills can be submitted to the customer. In most IT

companies, the role of 'logistics' or 'fulfillment' is key.

With organisations moving towards close to perfect standards like Six

Sigma, interaction with logistics suppliers has taken on a critical role

moving up sometimes to the level of the CEO of the organization.

Blue Dart Express Limited applied and found solutions to these

critical demands much before other players could even recognize their need.

Through its exceptional people processes, superior technology, and stress on

quality systems over the last, almost two decades now, Blue Dart was quick

to fulfill these needs:

The country's most reliable air and surface network offer a pre-

determined delivery schedule with close to 100% accuracy. The IT industry

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could plan its production with precision and avoid expensive inventory

build-up.

Blue Dart offers the country's most comprehensive communications

technology. Much before the internet was prevalent; Blue Dart customers

could dial into the network through Power Dart 2000 and track their

packages. As an added option, Fax dart could fax a copy of the delivery

record the minute the Blue Dart system was updated.

The country's only express airline with a fleet of three Boeing 737s

ensured that packages were flown to their destinations overnight. Another

tremendous advantage was that the individual size of packages that could be

carried multiplied manifold.

Retrieval of signed delivery records posed the industry's most

intriguing problem. Blue Dart was quick to understand this requirement and

put in place a 100% retrieval system.

Blue Dart not only handles large volumes and oversize packages

overnight - it also provides the industry with status of their shipments and

retrieves such records as are necessary for billing. The entire cycle has been

considerably shortened, enabling the industry to achieve healthy bottom-

line.

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Logistics software solutions

Vendor Solution Features

Blue

Dart

SENTOR (Status

Entry Offline for

Regional Service

Application program offered to Blue Dart offices and its

channel partners in remote areas via the Internet. Users

receive detailed information on inbound packages for

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participants)

delivery. Upon delivery, proof of delivery details are

entered offline and updated on Blue Dart's Web server

within three hours. The earlier time lag was 24 to 48

hours.

TNT ExpressShipper (to be

launched)

A PC-based solution aimed specifically at SMBs. It

improves the business efficiency of customers by helping

them send more than fifteen consignments a day.

Customers can track consignments and obtain price

quotations directly from their PCs.

FedEx Global Trade Manager

Online consultancy on customs-related paperwork for

SMBs that helps determine which customs documents

should accompany their (customer's) international

shipments. Lets customers print and fill them up thereby

helping them save time on potential border delays.

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SERVICES

OF

BLUE DART

SERVICES OF BLUE DART

REGIONAL SERVICES IN SAARC AREA

Between India, Bangladesh, Bhutan and Nepal.

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Blue Dart offers the fastest, most reliable, door-to-door express

deliveries for your documents and packages to countries in the SAARC

region through Regional Priority. The service offers access to over 13,700

locations in India, and over 800 locations in Bangladesh, Bhutan and Nepal,

providing the widest coverage in the region through a quality network, an

integrated air and ground infrastructure dedicated to express transportation

and innovative technology support.

Regional Priority: Documents (RPDX)

The most dependable and secure delivery for non-dutiable, critical and

important shipments such as legal documents and tenders. The Blue Dart

Envelope provides secure and attractive packaging for your documents,

brochures and reports up to 500gms.

Regional Priority: Non-Documents (RPDT)

Fast reliable and safe door deliveries for samples and non-commerical

shipments. Currently available between India and Nepal only.

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REGIONAL SERVICES

Let see different type of regional services: -

DOMESTIC PRIORITY

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The fastest, most reliable, door-to-door delivery service within

India and to Bangladesh, Nepal and Bhutan for documents and small

shipments under 32kgs per package. The special benefits of this

service are:

Delivery to over 13,700 locations in India

Free pick-up from your location

Real-time Tracking

Regulatory Clearances

Free Computerized Proof of Delivery

DART APEX

Dart Apex is a door-to-door delivery service

within India for shipments weighing 10kgs. And

above. It is the fastest, most efficient delivery solution

for commercial shipments that are time-bound and are

required to undergo regulatory clearances, or require special handling.

Dart Apex offers you an economical option of an Airport-to-Door

service from the major airports of Chennai, Bangalore, Mumbai, Delhi,

Kolkata and Hyderabad to all the Dart Apex locations serviced. A customer

may book space for their shipments through company’s Customer Service

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and deliver customer shipments to Blue Dart Aviation Office at the related

airport.

Dart Apex also offers a further economical option of a Door-to-

Airport service. A customer may book their shipments at any of company’s

locations serviced for this product to any of the major airports. Consignee

would be required to collect the shipment from the Blue Dart Aviation office

at the concerned airport.

Dart Apex offers the following benefits:

Wide Market Reach

Single-window Clearance

Real-time Information

Time-Definite Delivery

Free Proof of Delivery on Demand

Speed

Flexibility

Economical

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DART SURFACELINE

Dart Surfaceline is an economical, door-to-door,

ground distribution service within India for

shipments weighing 10 kgs and above. It offers a

cost-effective logistics option for your less time-sensitive shipments, with

the following value-added benefits:

Time-bound Delivery

Track your Shipment

Regulatory Clearances

Pick-up Convenience

Secure Shipments

Economical Tariff

SMART BOX

Smart Box is a convenient, economic, packaging

unit priced to include a door-to-door delivery

service within India. The units come in 2 sizes,

10kgs and 25 kgs, and are designed to accommodate a variety of products.

The special benefits of using Smart Box are:

41

A wide market reach

Speedy Delivery

Free pick-up

Real-time Tracking

Regulatory Clearances

Proof of Delivery

Trouble Free Service

42

INTERNATIONAL

SERVICE

43

INTERNATIONAL SERVICE

International services of Blue dart are taken over DHL EXPRESS in

2002.

Blue Dart Express Limited, through its International Sales alliance

with DHL, the premier global brand name in express distribution services,

offers DHL Document Express (DOX), DHL Worldwide Package Express

(WPX) and the Jumbo Box (Jumbo Box - 25 kgs. and Jumbo Junior - 10

kgs.), a one-stop shipping process for reliable, time-definite, door to door

delivery of international documents and packages. The service offers access

to 220 countries and territories worldwide and the extensive, quality network

of Blue Dart and DHL.

44

The special benefits of the International Services are:

1) A Convenient Solution for Urgent, International Documents &

Shipments.

2) Documents and packages will be picked-up from location, cleared

through customs and delivered to consignee.

3) Customs Clearance Expertise Specialists

conversant with customs formalities in India

as well as in 228 countries worldwide, and

pre-clearance for shipments in transit

available for most destinations, ensure efficient delivery.

4) Real-time Tracking.

5) A Cost-effective Option.

6) Packaging.

45

DHL

OFFERS

46

DHL OFFERS:

1. Express Document (DOX):

DHL Express document is the fastest, trustworthy and most secure way to

deliver non-dutiable shipments such as banking and legal documents,

reports, proposals, tenders, etc.

Features:

Priority financial industry services.

State of the art information systems.

Specialised fast handling facilities.

90% of international banks' first choice.

Door to door one company control.

World class packaging.

Benefits:

The best possible service to the company.

The leading edge for financial services.

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Track status online door to door.

Highest level of control and security.

One point of contact and accountability.

Peace of mind.

2. Worldwide Package Express (WPX):

DHL Express Package is the fastest most

secure way to deliver a dutiable international

shipment. For commercial shipments like

electrical goods and components, garments,

manufactured items & non-commercial

shipments.

Features:

Door to door service.

Simple documentation.

Packaging range.

Fastest for international expresss packages.

State of the art information systems.

Global customs clearance leader.

Global market leader for international express packages.

48

Benefits:

Fastest transit time.

Greater security and control.

Simplified and convenient process.

No hunting for packaging.

Detailed online tracking.

One company control.

Single Invoice.

Door to door peace of mind.

3. The Jumbo Box & Jumbo Junior Box:

DHL Jumbo Box and Jumbo Junior are the original market innovations

for value priced, flat fee international express. All the benefits of the

Worldwide Package Express plus. They offer low flat fees for shipments

up to 10kg and 25kg and convenient uniquely designed packaging to all

destinations worldwide.

Features:

Unique easy to assemble boxes.

Step by step customs declarations.

Full DHL express door to door service.

Low flat fee for each kilo over flat fee limit.

Strong packaging and simple documentation.

Benefits:

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Maximum convenience.

Low price.

Exporting documentation made easy.

Fastest transit time.

Door to door service.

Track status online door to door.

No hunting for packaging or paperwork.

Different types of international services : -

AIRPORT TO AIRPORT

The airport-to-airport service is an air

freight service available on the flights

operated by Blue Dart Aviation between the

airports of Kolkata, Delhi, Mumbai, Bangalore, Chennai and Hyderabad.

The advantages of an airport-to-airport service are:

Cooling-Period

All the Blue Dart Aviation warehouses are equipped with

X-ray machines, which eliminate the necessity of the mandatory 24 hour

cooling-period required for security reasons for all air freight transported

within India.

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Late Night Cut-off & Early Morning Deliveries

With Blue Dart Aviation's night operations, shipments

manufactured during the day can connect the night flights and be delivered

at destination the next morning.

Capacity

Blue Dart Aviation is the only cargo operator with

scheduled B737-200 freighter services within India and can offer a larger

capacity than other domestic airline.

CHARTERS

Blue Dart Aviation operates the only Boeing

737 freighters in India. The freighters have an 8-

pallet configuration, and operations are supported

by an in-house ground-handling and maintenance

capability, as well as bonded warehouses at all the on-line stations, and

company-owned cargo handling assets. With qualified, professionally-

trained personnel, Blue Dart Aviation is positioned to offer the most superior

quality of service in the country today.

Charters are operated on an ad-hoc basis. Normally, charters have

been used where timely delivery of sensitive equipment or large loads is

required. In the past, Blue Dart Aviation has operated charters for carriage of

TV Equipment for the Miss World Contest, high-value TV and Broadcasting

equipment for Cricket Matches around the country, perishable Aquaculture,

51

Computer peripherals and Electronics, Emergency Equipment and large

inventory for JIT plants.

INTERLINE

Blue Dart Aviation operates the only

Boeing 737 freighters in India. The freighters

have an 8-pallet configuration, and operations are

supported by an in-house ground-handling and maintenance capability, as

well as bonded warehouses at all the on-line stations, and company-owned

cargo handling assets. With qualified, professionally-trained personnel, Blue

Dart Aviation is positioned to offer the most superior quality of service in

the country today.

The bonded warehouses with customs personnel facilitate efficient

transhipment of cargo within India. This facility has enabled distribution of

imports within the country and has provided exports access to and from the

gateways of international airlines. This provides international airlines with a

cost-effective option to restrict their on-line stations within India, and

enhance their marketing possibilities at off-line locations by utilizing the

distribution capabilities of Blue Dart Aviation.

Currently, Blue Dart has interline agreements signed with 23

international airlines - Air Canada, Air France, Air India, Air Mauritius,

Alitalia, Asiana, British Airways, Cargolux, Cathay Pacific, China Airlines,

Cross Air, Das Air, El Al Israel Airlines, Emirates Sky Cargo, KLM Royal

52

Dutch Airlines, Kuwait Airways, Polar Air, Saudi Arabian Airlines,

Singapore Airlines, Sri Lankan Airlines, Swiss Air, South African Airways,

and Qatar Airways.

VALUE

ADDED SERVICES

53

VALUE ADDED SERVICES

Value added services on the rise. Blue Dart has started providing

value-added services like “logistics management, supply chain management

and warehousing facilities to its clients. Going forward demand for such

services from corporates is likely to grow at a fast clip. This is because by

outsourcing such services to third party service providers they would be able

to cut down on costs and improve their efficiency levels. For the courier

companies such services would be part of the overall value proposition they

would be offering their clients apart from the normal pick up and delivery.

Such services have the potential for enhancing the margins of courier

companies like Blue Dart. We believe that Blue Dart is best equipped to

capitalize on the growing opportunities in the emerging areas of

warehousing and supply chain management.

54

E-COMMERCE

INITIATIVE

55

E-commerce Initiatives

E-vision :-

To enable global connectivity to Blue Dart's present

and future interactive technology strengths, for

value added solutions.

To facilitate seamless integrated transportation,

distribution and supply chain management, from, to and within the region,

thereby increasing value to our customers and shareholders.

As a technology leader in the business of supply-chain management

in the country, Blue Dart Express Limited recognized the far-reaching scope

56

of the internet in 1996, and has been exploring web-based solutions to

extend the range of services available to its customers and integrate them

into its core products. It has evolved an e-strategy.

This e-strategy encompasses E-Solutions to deliver additional process

efficiencies to business by allowing them access to Blue Dart’s e-shipping

tools and integration with its e-business tools. An individual solution is

available for each business, big or small, transacting off the internet or on

the internet, and ranging from a stand-alone to a fully integrated one

The basic tracking solution will enable Blue Dart's customers

number. A mail-based solution will allow the customers to query status of to

track their shipments, through single or multiple waybills, on-line.

Customers can check the status of their shipments using a waybill number or

a reference their shipments using e-mail.

Registered customers of Blue Dart can make advanced queries on

the status of their shipments, and can keep track of them for up to 45 days

on-line. They can filter their queries by date range, origin, destination and

service, and sort the results on-line. Registered customers can download the

entire waybill tracking data - schedule the download, and select the

frequency and the data to be downloaded. These customers can also generate

and download various reports customized to meet their individual needs.

57

E-Shipping Tools :-

Blue Dart provides some convenient tools to aids to its customer’s shipping

management processes.

Web Based Tools

TrackDartTM

MailDartTM

Location Finder

Transit Time Finder

Price Finder

Billing

Schedule a pickup

Image Dart

58

Waybill Generation

Stand-alone Tools

COSMAT II

(Computerised On-line System for Management, Accounting and Tracking)

SMART

(Space Management Allocation Reservation and Tracking),

CaressTM

(Complaint Appreciation, Resolution and Evaluation to Satisfaction System),

ShieldTM

ShipDartTM

Customised Solutions

59

E-Business Tools :-

Blue Dart has been the only

Indian Air Express Company that has

invested extensively in Technology

infrastructure to create differentiated delivery

capabilities, quality services and customized solutions for the

customer.

These tools may be efficiently integrated with the customer’s systems

to provide him with a convenient and cost-effective solution to his

shipping requirements.

Some of the technology-based business offerings are as follows:-

60

InternetDartTM

Track on-line the status update of your shipments sent over the last 45

days. You may track by a range of dates, origin, destination, delivered

or undelivered shipments or service used, on-line. You may generate a

series of reports, at a pre-determined frequency, and sort the results

on-line.

ShopTrackTM

ShopTrackTM is an API (Applications Program

Interface) designed specifically to support and enhance the services

provided by a portal or any e-business.

PackTrackTM

PackTrackTM is an API (Applications Program Interface) designed for

any client involved in logistics, distribution and inventory control.

PackTrackTM can be integrated into the client's systems and enables

him to keep track of the entire distribution status of all his customers.

MobileDartTM

61

MobileDartTM - WAP works on any mobile phone or device which

supports Wireless Application Protocol. Using MobileDart-WAP, the

customer can check the current status of his shipments on-line by

entering the waybill number.

62

BLUE DART

INITIATES

CUSTOMER

SATISFACTION

BENCHMARK

BLUE DART INITIATES CUSTOMER

SATISFACTION BENCHMARK

As a business entity customer have dispatched an important package

that contains some confidential business documents. Customers do not know

63

the status of the documents shipped. Customer’s end up making endless

calls to the courier service office asking them when the 'Proof of Delivery'

(POD) will come their way since company need to be assured that

everything that was sent has reached the destination. Now, Blue Dart

Express Ltd promises to cure customer’s conventional woes.

Termed 'net service levels', the initiative is all internal benchmarking

exercise by which the organisation evolves an action plan to examine the

areas where the customer satisfaction levels have not matched up to the

standards that have been established internally by the enterprise. The

company also evolves marketing strategic that can enable its business to

effectively retain customers.

Blue Dart Express Ltd senior vice-president (marketing & projects)

Tulsi Mirchandaney says that- "The express service Industry does not have

any external benchmark to look up to. Company’s therefore, decided to look

into some of the operations that successfully institutionalised internally, and

use those as benchmark to efficiently address various customer needs."

This implies that every day professionals from Blue Dart will monitor

the exact status of various shipments of its clients, especially air cargo

services which is one of the core offerings where the company generates

substantial business volumes. In this business, the company may encounter

imperatives like flight delays to bad weather conditions or some other

peculiar circumstances which may lead to considerable worry and anxiety

for the target customers. This is more so because the delivery of these

64

shipments would be crucial to effectively run their own independent end-

businesses. The team within the company, in such instances will track the

specific geographical areas where the problem persists through Internal

technology tool and other aligned systems that have been initiated by the

enterprise. The company will also personally interact with customers and

explain to them the exact reasons for the delay along with the time when the

cargo will be delivered.

Further, the moment the company discovers that there are certain

areas where customer service delivery is not in sync with the standards that

have been set by the organisation, the entire team gets down to analysing the

problem. This is done to determine where exactly the company needs to gear

up further.

65

CH –4

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY66

To gather the relevant information regarding the project, the following

method has been used.

A: Research Design

The research design is exploratory research design. In the exploratory

research design literature survey was conduct.

A research design is purely and simply the framework or plan for a study

that guides the collection and analysis of data.

Exploratory Research Design:

The exploratory study is particularly helpful in breaking broad and vague

problem into smaller, more precise sub – problem statements. Exploratory

studies help in formulating hypotheses for the further research.

Literature survey:

One of the most economical and quickest ways to discover hypotheses is

through a literature search. For this purpose, large volumes of published and

unpublished data are available.

B: Data Collection Design

67

Research Design

Exploratory Research Design

Literature Survey

Data Type

There are mainly two types of data are available; Primary data and

Secondary data,

I conducted my study mainly based on the secondary data. That is collected

by the –

Secondary Data:

Secondary data is that data which are collected for some earlier research

work and are applicable in the study the research has presently undertaken.

Depending upon the gathering sources, secondary data can be divided iinto

two categories-

i. Internal data:

Internal data is procured by the research in normal operations within

his own premises.

Companies websites

Company catalogue

ii. External data:

External data are generated and collected from variety of events and

sources outside the firm’s premises.

Business magazines

Various newspapers

Journals

Various books

68 Secondary Data

Various internal Indexes, Commercial

reports of the firm. sources etc.

C: Sample Design

Collecting data from where only a few units of population under study are

considered for analysis is called sampling method.

Sample Size:

A sample size of 1 Company was taken.

Sample Type:

There are two main categories; Probability sampling and Non –

probability sampling.

The sample type was Non-probability sampling.

Non-probability sampling:

In non-probability sampling, the chance of any particular unit in the

population being selected is unknown.

69

Internal Data External Data

Sample Technique:

There are mainly three non – probability designs; Judgment sampling

Convenience sampling and Quota sampling.

Judgment sampling technique was used.

D: Tools

It was secondary data that I have used in my project.

70

Sample Design

Non-Probability

Judgment

CH-5

RESULT & ANALYSIS

71

RESULT & ANALYSIS

Logistics is defined as a business planning framework for the management

of material, service, information and capital flows. It includes the

increasingly complex information, communication and control systems

required in today's business environment.

A recent US study found that logistics costs account for almost 10% of the

gross domestic product. The process itself covers a diverse number of

functional areas. Involved in logistics are transportation and traffic, as well

as shipping and receiving. It also covers storage and import/export

operations.

In business, logistics may have either internal focus (inbound logistics), or

external focus (outbound logistics) covering the flow and storage of

materials from point of origin to point of consumption. The main functions

of a qualified logistician include inventory management, purchasing,

transportation, warehousing, consultation and the organizing and planning of

these activities.

The issue is not the transportation itself, but to streamline and control the

flow through the value adding processes and eliminates non-value adding

ones.

As a technology leader in the business of supply-chain management in the

country, Blue Dart Express Limited recognised the far-reaching scope of

logistics in the country as well as outside the country.

The techniques and procedure used by the Blue Dart are very effective that

is keeping pace with time and requirement of the customers.

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To enable global connectivity to Blue Dart's present and future interactive

technology strengths, for value added solutions.

To facilitate seamless integrated transportation, distribution and supply

chain management, from, to and within the region, thereby increasing value

to their customers and shareholders.

The delivery of goods to the customer in the most reliable transit period (and

preferably the shortest) possible. 'Reliable' alludes to a certain guaranteed

transit time for packages to reach customers or the response that

organisations need in the event of any exceptions.

The country's only express service provider with a dedicated fleet of seven

freighters (two Boeing 757s and four Boeing 737s) ensures that packages are

flown to their destinations overnight. These freighters offer capacity and

volumes not available with any other carrier in the domestic air space.

The company will also personally interact with customers and explain to

them the exact reasons for the delay along with the time when the cargo will

be delivered.

Blue Dart is mainly focuses on the international services. Blue Dart does not

have very well connection with the national airports. The national airport

services are limited to certain airports and are very expensive. At national

level transportation of goods is done via road that makes delay in the

service.

Though it always try to fulfill all the requirement of its customers but it is

lacking in the case of domestic services. It must pay equal attention on the

domestic services so that more and more people can take the advantages of

its ultimate services.

73

CH - 6

FINDINGS

OF

THE STUDIES

74

FINDINGS

On the basis of study conducted, it is evident that BLUE DART is following

most of pre-requisites of an efficient logistics (supply-chain management)

company.

However there are some areas, which need further attention for increasing

the quality of services.

FINDING:-

Blue Dart express ltd. is fully aware of the basic need of customers

than its competitors.

The delivery of goods to the customer in the most reliable transit

period (and preferably the shortest) possible.

The reverse flow of acknowledged, signed delivery records is trust

worthy.

The country's most reliable air and surface network offers a pre-

determined delivery schedule with close to 100% accuracy.

Blue Dart offers the country's most comprehensive communications

technology and customer software to support critical supply-chain

distribution demands.

Blue Dart is mainly focuses on the international services.

Blue Dart does not have very well connection with the national

airports.

The national airport services are limited to certain airports and are

very expensive.

75

At national level transportation of goods is done via road that makes

delay in the service.

CH - 7

RECOMMENDATIONS

76

77

RECOMMENDATIONS

The following are the recommendation based on the study:-

Since Blue Dart is mainly focuses on the international services so it

must pay attention in the domestic services.

Blue Dart does not have very well connection with the national

airports so Blue Dart must make good connection with the national

airports.

At national level transportation of goods is done via road that makes

delay in the service so the national airport services must be spread to

every airport so it will be resulted into quick service.

The national airport services are limited to certain airports and are

very expensive. Spreading to the every airport will also

result into the reasonable service.

78

CH - 8

CONCLUSIONS

79

CONCLUSIONS

The process of planning, implementing, and controlling the efficient, cost

effective flow and storage of raw materials, in-process inventory, finished

goods and related information from point of origin to point of consumption

for the purpose of meeting customer requirements.

A recent US study found that logistics costs account for almost 10% of the

gross domestic product. The process itself covers a diverse number of

functional areas. Involved in logistics are transportation and traffic, as well

as shipping and receiving. It also covers storage and import/export

operations.

The Blue Dart fulfill all the necessary and regulatory requirements of the

logistics of goods and service as a renowned ‘supply – chain management

company’, it sincerely concentrate on all the area of its quality services.

Though it always try to fulfill all the requirement of its customers but it is

lacking in the case of domestic services.

It must pay equal attention on the domestic services so that more and more

people can take the advantages of its ultimate services.

80

BIBLIOGRAPHY

81

BIBLIOGRAPHY

Secondary Data:

1. Webiliography: www.bluedart.com www.google.com www.rediff.com www.yahoo.com www.clm1.org/mission.html http://searchlogistics.techtarget.com www.calm.org/calm/AboutCALM/

AboutCALM.html

2. Books:

Khurana P.K., “Export Management”,Galgotia Publication, New Delhi.

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